Correlation Between REGAL ASIAN and ELMOS SEMICONDUCTOR
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN and ELMOS SEMICONDUCTOR at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining REGAL ASIAN and ELMOS SEMICONDUCTOR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REGAL ASIAN INVESTMENTS and ELMOS SEMICONDUCTOR, you can compare the effects of market volatilities on REGAL ASIAN and ELMOS SEMICONDUCTOR and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in REGAL ASIAN with a short position of ELMOS SEMICONDUCTOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and ELMOS SEMICONDUCTOR.
Diversification Opportunities for REGAL ASIAN and ELMOS SEMICONDUCTOR
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between REGAL and ELMOS is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS and ELMOS SEMICONDUCTOR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELMOS SEMICONDUCTOR and REGAL ASIAN is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on REGAL ASIAN INVESTMENTS are associated (or correlated) with ELMOS SEMICONDUCTOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELMOS SEMICONDUCTOR has no effect on the direction of REGAL ASIAN i.e., REGAL ASIAN and ELMOS SEMICONDUCTOR go up and down completely randomly.
Pair Corralation between REGAL ASIAN and ELMOS SEMICONDUCTOR
Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to under-perform the ELMOS SEMICONDUCTOR. But the stock apears to be less risky and, when comparing its historical volatility, REGAL ASIAN INVESTMENTS is 3.0 times less risky than ELMOS SEMICONDUCTOR. The stock trades about -0.21 of its potential returns per unit of risk. The ELMOS SEMICONDUCTOR is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 5,380 in ELMOS SEMICONDUCTOR on September 1, 2024 and sell it today you would earn a total of 730.00 from holding ELMOS SEMICONDUCTOR or generate 13.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. ELMOS SEMICONDUCTOR
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| ELMOS SEMICONDUCTOR |
REGAL ASIAN and ELMOS SEMICONDUCTOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and ELMOS SEMICONDUCTOR
The main advantage of trading using opposite REGAL ASIAN and ELMOS SEMICONDUCTOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN position performs unexpectedly, ELMOS SEMICONDUCTOR can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ELMOS SEMICONDUCTOR will offset losses from the drop in ELMOS SEMICONDUCTOR's long position.| REGAL ASIAN vs. PennantPark Investment | REGAL ASIAN vs. SEI INVESTMENTS | REGAL ASIAN vs. MARKET VECTR RETAIL | REGAL ASIAN vs. Strategic Investments AS |
| ELMOS SEMICONDUCTOR vs. SIVERS SEMICONDUCTORS AB | ELMOS SEMICONDUCTOR vs. Darden Restaurants | ELMOS SEMICONDUCTOR vs. Reliance Steel Aluminum | ELMOS SEMICONDUCTOR vs. Q2M Managementberatung AG |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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